1. INTERNAL ANALYSIS
Team B
James Akosah, Sanna Burton, Joseph Buyondo, Mohammed El Uharani, Linci Elvis, Evgeni
Kurten, Yaoyu Ma, Tikere Nhambo, Armando Pereira, Nora Uotila, Paulo Vieira, Laura
Wild

2. Content:
-The Resource-Based Model
–Gary Hamel
–Resources, Capabilities and
Competencies
–Value Chain Analysis
Internal Analysis definition:
A process of identifying and evaluating an
organizations specific characteristics
lnternal analysis focus on the current
situation; vision, mission, strategic objectives
and strategies to be able to understand the
needed changes.
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3. Resources are any assets such as:
Financial (cash reserves, investments…)
Human (experience, knowledge, skills, abilities and
competencies)
Physical (equipment, office buildings, manufacturing, raw
material or any other intangible materials)
Intangible (Brand, patents, reputation, trademarks and
databases)
What is a Resource-Based Model: What makes them ”unique”?
A concept that: Valuable, allowing the company to exploit
opportunities or neutralize the external environment.
Adopts an internal perspective
Rare or possessed by few, if any current and
Firm’s are unique bundles of resources potential competitors.
Firm’s resources are most important in getting and keeping Hard to imitate such that other competitors cant or
competitive advantage build same or obtain only at cost disadvantage.
Ability to exploit take full advantage of the
resources to develop competitive advantage.
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4. Gary Hamel
Facebook
Generation
Dr. Gary P. Hamel :American management expert.
Graduate of Andrews University (1975) and the Ross School of
Business at the University of Michigan (1990).
Gary Hamel is the originator (with C. K. Prahalad) of the concept
of core competencies
The Wall Street Journal recently ranked Gary Hamel as the
• All ideas compete on an equal footing
world's most influential business thinker
His latest book, The Future of Management, was published by the • Contribution counts for more than credentials
Harvard Business School Press in October 2007 and was selected
by Amazon.com as the best business book of the year • Hierarchies are natural, not prescribed
The internet and the business world are full of materials regarding • Leaders serve rather than preside
Gary Hamel. By this reason, is very hard to choose one of his
• Tasks are chosen, not assigned
works only. His latest publishing is The Future of Management,
published by Harvard Business School Press, in 2007. He became • Groups are self-defining and -organizing
a Guru in the business world and few persons have similar
• Resources get attracted, not allocated
influence in this field as him. To illustrate this report was chose a
specific article published by The Wall Street Journal, in March 24, • Power comes from sharing information, not
2009. In the chosen article, Gary Hamel anticipates one more hoarding it
time the future of management environment creating a list of, in
• Opinions compound and decisions are peer-
his opinion, what he called the Facebook Generation. Following reviewed
are listed the 12 characteristics of what Gary Hamel has called
the GenF. • Users can veto most policy decisions
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5. RRee
Resources Organizational Capabilities Dynamic Organizational
Capabilities
Organizational routines and
Tackling the challenges from
Assets for carrying out what ever processes changing environment
work activities/processes the
->Turning input, i.e. resources, into Sustainable competitive advantage
organization is doing in it’s business
output
Resources are the source of Ability to build, integrate and
->Getting value out of the resources reconfigure capabilities
company’s competitive advantage
But more importantly determines the Turning captured value into ->Timely responsiveness
capabilities and core competencies ->Rapid and flexible product
->Core competences
Resources alone are not productive- innovation
->Distinctive organizational
>process ->Management expertise in
capabilities
coordinating and redeploying
Gaining competitive advantage resources and capabilities
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6. Core Competencies and Distinctive Capabilities
Core competencies = any major value-creating capabilities organizations have that are essential to their
business
Organizational capabilities are fundamental building blocks for developing core competencies
lf core competencies are established
->Can improve and enhance other organizational capabilities
->Can contribute to developing distinctive capabilities
->Leads to a competitive advantage
Distinctive organizational capabilities = special and unique capabilities that distinguish an organization from
its competitors
Three characteristics:
Contributes to superior customer value
Is difficult for competitors to imitate
Can be used in a variety of
ways
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8. Value Chain Model
Definition
•Systematic approach to examining the development of competitive
advantage
•Created by M. E. Porter-Competitive Advantage (1980).
•Activities that create and build value
–Primary activities and support activities
all together consist of activities that link together to develop the value of the
business
• Primary activities •Support activities
a)Inbound logistics a)Procurement
b)Operations b)Human Resource Management
c)Outbound logistics c)Technology Development
d)Marketing and sales d)Firm Infrastructure
e)Service
Value chain activities are not independent from one another. one value chain activity often affects
the performance of other ones.
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9. Porter's Generic Value Chain
M
Inbound A
Marketing
Logistic > Outbound R
Operations > > & > Service >
s Logistics G
Sales
I
N
Firm Infrastructure
HR Management
Technology Development
Procurement
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10. Cost Advantage and the Value Chain
Steps in Value Chain Analysis
•Break down a market
•A firm may create a cost advantage,
•Assess the potential for adding value via cost advantage or
–Reducing the cost of individual value chain
differentiation,
activities or
•Determine strategies built around focusing on activities
– Reconfiguring the value chain.
where competitive advantage can be sustained. •cost drivers -value chain activities
–Economies of scale
–Learning Capacity
–utilization Linkages among activities.etc.
•Cost advantage: by better understanding costs and
squeezing them out of the value-adding activities.
•Differentiation: core competencies and capabilities are the
main objective of the activities so as to perform better than
competitors do.
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